Hereford investors put their faith in gold

9:46am Tuesday 14th October 2008

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HEREFORDSHIRE investors are putting their faith in gold as the world faces global economic meltdown.

They are finding all that glisters is gold as they lose faith in cash as a mixed economic picture emerges in the county.

Hereford Gold, in Commercial Road, has seen sales more than double since this time last year and substantial month-on-month increases.

Co-owner Robert Broadfoot said: “The truth is people are investing in gold coins for security. Gold has been around a lot longer than banks. People are just reverting to type.

“We had a local businessman saying he wanted to take money out of a bank and invest in a kilo of gold. This was over £15,000 and he came in with the cash. Lots of people are doing this.

“If you had bought a one-ounce krugerrand last week I would have sold it for £449 but, today, I’m paying £480.”

Investors also appear to be turning to works of art, including furniture, ceramics and paintings. Last week the contents Great Brampton House, owned by a Herefordshire antique dealer, were sold for more than £2 million at auction.

An international crowd gathered to buy 700 lots owned by Lady Pamela Pidgeon, with £120,000 being paid for two portraits.

And the global economic turmoil looks like it is playing its part in trading conditions affecting Herefordshire businesses.

The last few months have seen Peacocks leave the city’s Butter Market and Kingspan announce 64 job losses in Pembridge.

W&J Scaffolding have also announced cuts, while workers at Triplex in Hereford and Forest Gardens in Eardisley face uncertain futures.

This week, 14 people have been made redundant at the Hereford branch of car parts supplier LSUK, which has gone into administration.

Richard Maxfield, managing director at Cargill – formerly Sun Valley – has witnessed one of the worst summers on record. He said the poor weather had affected meat sales for barbecues but September had proved to be a better month for one of the county’s biggest employers.

The housing market is one area that has been affected. Estate agent Andrew Morris said he had never experienced such a difficult market in his 42 years of selling homes in the county.

“While we are still selling property, it is at a much more reduced rate and at lower prices,” he said.

City traders are competing hard for business, with many offering substantial reductions in prices, and some stores, such as Rosebys Interiors in Eign Gate, closing down.

Hereford city centre manager Cynthia Palmer described trading conditions as “rough”.

“I think shoppers are acutely aware that Christmas is coming and they do not have as much money in their pocket as they could have, so at the moment they are hanging on to it,” said Mrs Palmer.

She said the festive period would be crucial, with many shops depending on it for 40% of their annual turnover. “A lot of high street shops are feeling the pinch,” she said.